Go Back  British Expats > Living & Moving Abroad > Middle East
Reload this Page >

Highest Interest Rate?

Highest Interest Rate?

Old Jan 28th 2009, 1:18 pm
  #1  
Just Joined
Thread Starter
 
Joined: Jan 2009
Posts: 7
soonerindubai is an unknown quantity at this point
Default Highest Interest Rate?

New to the forum and Dubai.

I have seen a lot of ads from different banks, any recommendation who is offering the higest returns?

UAE National Bonds, any experience?

thanks
soonerindubai is offline  
Old Jan 28th 2009, 2:24 pm
  #2  
Bored liberal
 
Meow's Avatar
 
Joined: Feb 2007
Location: Over there ----->
Posts: 13,704
Meow has a reputation beyond reputeMeow has a reputation beyond reputeMeow has a reputation beyond reputeMeow has a reputation beyond reputeMeow has a reputation beyond reputeMeow has a reputation beyond reputeMeow has a reputation beyond reputeMeow has a reputation beyond reputeMeow has a reputation beyond reputeMeow has a reputation beyond reputeMeow has a reputation beyond repute
Default Re: Highest Interest Rate?

I am assuming you are referring to UAE savings accounts. As the UAE Dirham is pegged to the US Dollar rates are linked too, so no one is offering high rates of interest. For various reasons, you should consider keeping savings offshore anyway, although rates are unlikely to be much higher.

The National Bond return for 2008 has just been announced at 7.07%. It is Sharia compliant product and so you do not receive interest, but a share of profits. The return is not guaranteed,

-
Meow is offline  
Old Jan 28th 2009, 3:20 pm
  #3  
Just Joined
Thread Starter
 
Joined: Jan 2009
Posts: 7
soonerindubai is an unknown quantity at this point
Default Re: Highest Interest Rate?

Thanks.

Now I have heard this before, don't keep a lot ofmoney in Dubai.

ANy specific reasons?

heard accounts can be frozen here by the govt anytime or even by the landlords and such. Any truth to that?
soonerindubai is offline  
Old Jan 28th 2009, 4:07 pm
  #4  
Now 15% less offensive
 
NedKelly63's Avatar
 
Joined: Jul 2004
Location: Poole, Dorset. (Ex. Dubai, but might be back soon)
Posts: 793
NedKelly63 has much to be proud ofNedKelly63 has much to be proud ofNedKelly63 has much to be proud ofNedKelly63 has much to be proud ofNedKelly63 has much to be proud ofNedKelly63 has much to be proud ofNedKelly63 has much to be proud ofNedKelly63 has much to be proud ofNedKelly63 has much to be proud ofNedKelly63 has much to be proud ofNedKelly63 has much to be proud of
Default Re: Highest Interest Rate?

Originally Posted by soonerindubai View Post
Thanks.

Now I have heard this before, don't keep a lot ofmoney in Dubai.

ANy specific reasons?

heard accounts can be frozen here by the govt anytime or even by the landlords and such. Any truth to that?
Yes - that is true. Not sure about Landlords, but if you end up in trouble with the old bill, I have heard that your accounts can be frozen. Best just to keep pin money in a local UAE account if you have one - squirrel the rest away offshore
NedKelly63 is offline  
Old Jan 29th 2009, 8:35 am
  #5  
Bored liberal
 
Meow's Avatar
 
Joined: Feb 2007
Location: Over there ----->
Posts: 13,704
Meow has a reputation beyond reputeMeow has a reputation beyond reputeMeow has a reputation beyond reputeMeow has a reputation beyond reputeMeow has a reputation beyond reputeMeow has a reputation beyond reputeMeow has a reputation beyond reputeMeow has a reputation beyond reputeMeow has a reputation beyond reputeMeow has a reputation beyond reputeMeow has a reputation beyond repute
Default Re: Highest Interest Rate?

Originally Posted by soonerindubai View Post
Thanks.

Now I have heard this before, don't keep a lot ofmoney in Dubai.

ANy specific reasons?

heard accounts can be frozen here by the govt anytime or even by the landlords and such. Any truth to that?

One of the main reasons is due to Sharia Law (covered in the Wiki). If a husband dies his accounts (both sole & joint) will be frozen immediately and the wife will not have access to funds. She is also not the automatic beneficiary of assets in the UAE.

-
Meow is offline  
Old Jan 29th 2009, 9:06 am
  #6  
Banned
 
Joined: May 2008
Location: Abu Dhabi
Posts: 1,936
Beard Man has a reputation beyond reputeBeard Man has a reputation beyond reputeBeard Man has a reputation beyond reputeBeard Man has a reputation beyond reputeBeard Man has a reputation beyond reputeBeard Man has a reputation beyond reputeBeard Man has a reputation beyond reputeBeard Man has a reputation beyond reputeBeard Man has a reputation beyond reputeBeard Man has a reputation beyond reputeBeard Man has a reputation beyond repute
Default Re: Highest Interest Rate?

Originally Posted by Meow View Post
One of the main reasons is due to Sharia Law (covered in the Wiki). If a husband dies his accounts (both sole & joint) will be frozen immediately and the wife will not have access to funds. She is also not the automatic beneficiary of assets in the UAE.

-

so how much she will get ?
Beard Man is offline  
Old Jan 29th 2009, 9:35 am
  #7  
Gold-Helmeted Member
 
captainflack's Avatar
 
Joined: Dec 2004
Location: Setubal-ish
Posts: 635
captainflack has a reputation beyond reputecaptainflack has a reputation beyond reputecaptainflack has a reputation beyond reputecaptainflack has a reputation beyond reputecaptainflack has a reputation beyond reputecaptainflack has a reputation beyond reputecaptainflack has a reputation beyond reputecaptainflack has a reputation beyond reputecaptainflack has a reputation beyond reputecaptainflack has a reputation beyond reputecaptainflack has a reputation beyond repute
Default Re: Highest Interest Rate?

I would not keep money as savings in the UAE.

The local banks here are up to their eyeballs in debt secured on property that has fallen by 50% plus already. Think Northern Rock x 100.

To minimize risk, I would spread it around European banks and ensure you are under the government protected amounts. Offshore jurisdictions like Jersey or IoM have fewer guarantees if a bank fails, so beware of those.

Also consider some gold. This is a good defence against either rampant inflation (which could happen as the central banks in the US and UK looks set to start printing money as a last throw of the dice) or a complete meltdown of the banking sector. Make sure you have full ownership, even if it is held in a vault (like bullionvault.com). In the event of hyperinflation or banking meltdown, you might lose some cash holdings, but the gold will go through the roof. So you don't need a huge amount of the stuff to cover that risk.

In short, the risks in the world banking sector are huge, so don't chase high interest rates, chase the banks you regards as safest. It is just not worth risking a dodgy bank for the sake of a couple of % per year, especially one in an offshore jurisdiction or backing from a government that does not have the funds to actually pay up (e.g. iceland).

Last edited by captainflack; Jan 29th 2009 at 9:37 am.
captainflack is offline  
Old Jan 29th 2009, 10:21 am
  #8  
BE Forum Addict
 
Grace O Malley's Avatar
 
Joined: Oct 2007
Location: Khaladiya Abu Dhabi
Posts: 4,181
Grace O Malley has a reputation beyond reputeGrace O Malley has a reputation beyond reputeGrace O Malley has a reputation beyond reputeGrace O Malley has a reputation beyond reputeGrace O Malley has a reputation beyond reputeGrace O Malley has a reputation beyond reputeGrace O Malley has a reputation beyond reputeGrace O Malley has a reputation beyond reputeGrace O Malley has a reputation beyond reputeGrace O Malley has a reputation beyond reputeGrace O Malley has a reputation beyond repute
Default Re: Highest Interest Rate?

um so we should move our money out of the UAE and put in European Banks, which banks tho and how do we know they are safe.

Am getting worried re the money i have here in local banks:curse:
Grace O Malley is offline  
Old Jan 29th 2009, 10:34 am
  #9  
MODERATOR
 
Norm_uk's Avatar
 
Joined: Dec 2004
Location: Dubai
Posts: 6,265
Norm_uk has a reputation beyond reputeNorm_uk has a reputation beyond reputeNorm_uk has a reputation beyond reputeNorm_uk has a reputation beyond reputeNorm_uk has a reputation beyond reputeNorm_uk has a reputation beyond reputeNorm_uk has a reputation beyond reputeNorm_uk has a reputation beyond reputeNorm_uk has a reputation beyond reputeNorm_uk has a reputation beyond reputeNorm_uk has a reputation beyond repute
Default Re: Highest Interest Rate?

Originally Posted by Beard Man View Post
so how much she will get ?
It depends on if her husband made a will and/or if he has any male relatives in most cases.

It's possible she would end up with very little but unlikely...the problem is that it can take months to resolve so what will she do for income while she waits for the verdict of the court?

N.
Norm_uk is offline  
Old Jan 29th 2009, 12:33 pm
  #10  
Banned
 
Joined: May 2008
Location: Abu Dhabi
Posts: 1,936
Beard Man has a reputation beyond reputeBeard Man has a reputation beyond reputeBeard Man has a reputation beyond reputeBeard Man has a reputation beyond reputeBeard Man has a reputation beyond reputeBeard Man has a reputation beyond reputeBeard Man has a reputation beyond reputeBeard Man has a reputation beyond reputeBeard Man has a reputation beyond reputeBeard Man has a reputation beyond reputeBeard Man has a reputation beyond repute
Default Re: Highest Interest Rate?

Originally Posted by annacarna View Post
um so we should move our money out of the UAE and put in European Banks, which banks tho and how do we know they are safe.

Am getting worried re the money i have here in local banks:curse:


give it to me i will secure it for you lol
Beard Man is offline  
Old Jan 29th 2009, 12:35 pm
  #11  
Banned
 
Joined: May 2008
Location: Abu Dhabi
Posts: 1,936
Beard Man has a reputation beyond reputeBeard Man has a reputation beyond reputeBeard Man has a reputation beyond reputeBeard Man has a reputation beyond reputeBeard Man has a reputation beyond reputeBeard Man has a reputation beyond reputeBeard Man has a reputation beyond reputeBeard Man has a reputation beyond reputeBeard Man has a reputation beyond reputeBeard Man has a reputation beyond reputeBeard Man has a reputation beyond repute
Default Re: Highest Interest Rate?

Originally Posted by Norm_uk View Post
It depends on if her husband made a will and/or if he has any male relatives in most cases.

It's possible she would end up with very little but unlikely...the problem is that it can take months to resolve so what will she do for income while she waits for the verdict of the court?

N.


well i don't think it is complicated that much.

i am not sure... but are you talking about a case of a british lady who just lost her husband here in the UAE?? or generally speaking??
Beard Man is offline  
Old Jan 29th 2009, 1:52 pm
  #12  
Lost in BE Cyberspace
 
Joined: Jul 2007
Posts: 13,553
The Dean has a reputation beyond reputeThe Dean has a reputation beyond reputeThe Dean has a reputation beyond reputeThe Dean has a reputation beyond reputeThe Dean has a reputation beyond reputeThe Dean has a reputation beyond reputeThe Dean has a reputation beyond reputeThe Dean has a reputation beyond reputeThe Dean has a reputation beyond reputeThe Dean has a reputation beyond reputeThe Dean has a reputation beyond repute
Default Re: Highest Interest Rate?

Originally Posted by Meow View Post
I am assuming you are referring to UAE savings accounts. As the UAE Dirham is pegged to the US Dollar rates are linked too, so no one is offering high rates of interest. For various reasons, you should consider keeping savings offshore anyway, although rates are unlikely to be much higher.

The National Bond return for 2008 has just been announced at 7.07%. It is Sharia compliant product and so you do not receive interest, but a share of profits. The return is not guaranteed,

-
The trouble is - local banks ARE offering high rates of interest........... way above 'market rates' because they desperately need cash.

I've seen bids of 6-7% p.a. for 6 month fixed term deposits.......... but beware, and remember the 'golden rule' - never give your money to anyone who is willing to pay the sort of interest rate you'd like to earn.

And if you have a million or more AED, and are willing to lock it away for THREE YEARS............... Ab Dab Commercial Bank will pay you 25%.

Avoid............ it tells you something about how desperately they need your cash.
The Dean is offline  
Old Jan 29th 2009, 2:08 pm
  #13  
BE Enthusiast
 
Joined: Oct 2008
Location: Moved to Mirdif
Posts: 319
Alen1 has a reputation beyond reputeAlen1 has a reputation beyond reputeAlen1 has a reputation beyond reputeAlen1 has a reputation beyond reputeAlen1 has a reputation beyond reputeAlen1 has a reputation beyond reputeAlen1 has a reputation beyond reputeAlen1 has a reputation beyond reputeAlen1 has a reputation beyond reputeAlen1 has a reputation beyond reputeAlen1 has a reputation beyond repute
Default Re: Highest Interest Rate?

Originally Posted by The Dean View Post
The trouble is - local banks ARE offering high rates of interest........... way above 'market rates' because they desperately need cash.

I've seen bids of 6-7% p.a. for 6 month fixed term deposits.......... but beware, and remember the 'golden rule' - never give your money to anyone who is willing to pay the sort of interest rate you'd like to earn.

And if you have a million or more AED, and are willing to lock it away for THREE YEARS............... Ab Dab Commercial Bank will pay you 25%.

Avoid............ it tells you something about how desperately they need your cash.
Agree: research the BCCI debacle; not that present banks are run by criminals, but offers that seem too good to be tue....
Alen1 is offline  

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Contact Us Archive Advertising Cookie Policy Privacy Statement Terms of Service

Copyright © 2018 MH Sub I, LLC dba Internet Brands. All rights reserved. Use of this site indicates your consent to the Terms of Use.